Petrogen's Emily Hawes #3A Well Flows Gas
Petrogen has completed an extended test of its Texas Gulf Coast discovery well, the Emily Hawes #3A ("EH#3A") located within Petrogen's Emily Hawes Field, as part of the well's completion and pipeline connection program. The extended test resulted in a stabilized natural gas production rate of 750 mcfgd through a 12/64" choke. The Company plans to complete the well within the month of May, utilizing a gravel pack and then connecting the well to the Company's gas gathering pipeline. Petrogen anticipates receipt of initial production revenues within approximately sixty days after the well's completion.
Petrogen's Chairman and CEO, Sacha H. Spindler stated, "We are very pleased with the results achieved from Petrogen's EH#3A wellbore, which provides the platform for the next phases of our ongoing development initiatives on Matagorda Island and within the very prolific Texas Gulf Coast natural gas area play. The success of the EH#3A extended test marks the Company's first major step in the integration of our development model for Petrogen's Emily Hawes Field prospect, effectively proving out the initial stages of our business development strategy for our Texas Gulf Coast objectives."
On November 23, 2004, Petrogen announced that it successfully tested natural gas from the EH#3A well from the Basal Miocene M1 sand with an absolute open flow of 1,998 mcfgd; 978 mcfgd was tested on a 14/64" choke with flowing tubing pressure of 1,395 psi and a final shut-in pressure of 1,950 psi.
On May 7, 2005, crews were mobilized to Emily Hawes Field and immediately began the extended production test. The well initially measured a shut-in tubing pressure of 2,083 psi. Initial production rates were measured at 266 mcfgd on a 10/64" choke with 1,337 psi flowing tubing pressure against 400 psi of back-pressure. After approximately twenty-four hours of production, flow rates were measured at 421 mcfgd on a 10/64" choke with 1,428 psi flowing tubing pressure against 400 psi back-pressure. Subsequently, the choke size was increased to 12/64", at which time production immediately increased to 586 mcfgd with 1,330 psi flowing tubing pressure against 400 psi back-pressure. After approximately twelve hours of additional clean-up time, well flow was measured at 660 mcfgd with flowing tubing pressure of 1,405 psi. At the end of the sixty-five hour test, well flow rates increased to 750 mcfgd on a 12/64" choke with flowing tubing pressure of 1,420 psi against 400 psi back-pressure. At the conclusion of a two-hour shut-in period immediately following the test, the well recorded a final shut- in tubing pressure of 1,960 psi. Analysis of the gas produced during this test measured 97.3% methane with 1,025 BTU/cubic foot content. The Company is currently preparing to complete the EH#3A well by installing a gravel pack and subsequently, connecting it to the Company's pipeline.
Mr. Spindler further stated, "Petrogen's ongoing development plans for the Emily Hawes Field include an aggressive development agenda focused upon expanding gas production from the Miocene Sands over the entire aerial extent of the Emily Hawes Field through potentially spudding up to as many as three additional Miocene wells during the 2005 drilling season to attempt exploitation of the approximately 12.3 bcfg of previously producing natural gas reserves."
Petrogen recently increased its working interest on Emily Hawes Field to 75%. Additionally, the Company recently purchased the Matagorda Island natural gas gathering pipeline, the only existing natural gas right-of-way on Matagorda Island. The increased working interest, coupled with its pipeline acquisition, strategically positions the Company to implement its development and expansion program in the Texas Gulf Coast while also ensuring our control of the necessary infrastructure, helping secure the Company's current and future presence as a viable Gulf Coast operator.
The Emily Hawes Field property is located approximately 90 miles southwest of Houston, Texas within the prolific oil and gas producing Miocene-Frio trend of the onshore and offshore Texas Gulf Coast. Near term plans include the expansion of operations through the development of a number of infill and step-out drilling locations targeted at the Basal Miocene Sands within the Emily Hawes Field after the completion and hook-up of the EH#3A well.
About Matagorda Island
Matagorda Island is one of seven barrier islands located in the Gulf of
Mexico, Texas Gulf Coast. Today, Texas and the Texas Gulf Coast represent one
of the premier oil and gas exploration regions in the world, accounting for
32% of all natural gas production and 27% of proved natural gas reserves in
the United States. Over the past few years, several large discoveries by
Shell, BP and Chevron Texaco have contributed to the growing prominence of the
Gulf Coast region as a hotbed for the expansion of domestic natural gas
developments. Matagorda Island is approximately 34 miles long by 4 miles wide
and is situated along the prolific, natural gas producing Miocene/Frio trend.